Is Focusing on Non-Gaming Attractions a Smart Strategy for IR Operators?

The integration of non-gaming attractions into integrated resorts (IRs) has become a topic of discussion among industry professionals. Given the plateauing revenue from traditional gaming activities, IR operators are increasingly looking to non-gaming options to enhance their overall visitor experience and attract a broader range of customers. But is this a strategic move that pays off in the long run?

Understanding the Shift in User Acquisition Strategies

The challenges of user acquisition in the gaming app domain have led to a paradigm shift in the way IR operators approach their marketing and business strategies. While traditional gaming apps rely on high engagement and addictive gameplay to retain users, non-gaming apps and experiences often focus on providing unique and captivating experiences that appeal to a wider audience.

Key Differences in User Acquisition for Gaming and Non-Gaming Apps

Firstly, the metrics for success differ significantly between the two domains. For gaming apps, the primary KPIs include active users, daily login rate, and time spent within the app. In contrast, non-gaming apps often look at factors like customer satisfaction, repeat visits, and average spend per session.

Moreover, the underlying psychology of the user base is different. Gaming app users are typically more enticed by rewards, challenges, and social interactions, whereas non-gaming app users are driven by factors such as relaxation, entertainment, and novelty.

Impact on Customer Behaviour

A study highlighted that non-gaming experiences have a stronger positive effect on customers' behavioural intentions compared to gaming-oriented activities. This finding suggests that the design and implementation of non-gaming attractions can substantially influence customer behavior and satisfaction. The data reveal that for customers primarily interested in non-gambling activities, non-gaming experiences significantly enhance their interest and engagement, with a β value of .358 (p

Conversely, for customers with a gaming inclination, the impact of non-gaming attractions is much lesser, with a β value of.051 (p 0.180), signaling a relatively weak effect. This discrepancy underscores the need for tailored approaches in integrating non-gaming elements to meet the diverse needs of different visitor segments.

Exploring Non-Gaming Net Revenues

Non-Gaming Net Revenues encompasses a wide array of sources beyond traditional gambling activities. These include but are not limited to dining, retail, wellness, entertainment, and cultural events. IR operators have recognized that diversifying revenue streams can mitigate the risks associated with fluctuations in the gaming market.

By leveraging non-gaming attractions, IRs can create a more sustainable and resilient business model. For instance, high-end dining experiences, luxury retail spaces, and exclusive entertainment events can attract a broader demographic, including families, couples, and business travelers. These non-gaming revenues not only contribute to the bottom line but also enhance the overall appeal of the resort.

Case Studies

The success of non-gaming initiatives has been demonstrated in several case studies. Marina Bay Sands in Singapore, for instance, has successfully integrated various non-gaming attractions such as the Crystal, SKY observation deck, and The Shoppes. These amenities have not only boosted non-gaming revenues but also improved overall customer satisfaction and repeat visits.

Similarly, Macao’s City of Dreams has implemented a wide range of entertainment options, including theaters, live performances, and art installations, which have attracted a diverse clientele and provided a significant influx of non-gaming revenue.

Challenges and Considerations

While the shift towards non-gaming attractions presents numerous opportunities, it also comes with several challenges. For instance, ensuring that non-gaming experiences align with the overall brand image and the expectations of the target audience is crucial. Additionally, the quality and relevance of non-gaming offers must be constantly evaluated to maintain customer loyalty and encourage repeat visits.

Furthermore, managing the resources and coordination between different departments within the IR is essential. A holistic approach that integrates marketing, operations, and customer service is necessary to deliver seamless and enjoyable experiences to visitors.

Conclusion

In conclusion, focusing on non-gaming attractions appears to be a strategic move for IR operators looking to diversify their revenue streams and enhance the overall visitor experience. By understanding the distinct needs and motivations of their customers and designing tailored non-gaming experiences, IR operators can create a more sustainable and resilient business model.

The shift towards non-gaming attractions not only addresses the challenges posed by plateauing gaming revenue but also aligns with the evolving expectations of modern travelers. As IRs continue to innovate and refine their offerings, the integration of non-gaming elements will undoubtedly play a pivotal role in shaping the future of the integrated resort industry.